An IRA is an excellent way to save for retirement. You will benefit from tax deductible- contributions (within AGI Limits) and tax-deferred growth. GEBA's Member Service Representatives can speak with you about the unique benefits of a Traditional IRA and how it may be applied to your personal financial plan.
Eligibility: Anyone with earned income can establish a Traditional IRA prior to the tax year in which he or she reaches age 70 ½. You may have a Traditional IRA even if you participate in a qualified pension, profit-sharing, or other retirement plan (TSP)
|
If covered by an employer-sponsored plan |
If NOT covered by an employer-sponsored plan |
| Filing Status is. |
AND Modified AGI is. |
THEN Deduction is. |
AND Modified AGI is. |
THEN Deduction is. |
| Single, Head of Household |
<$52,000 |
Full Deduction |
|
|
| $52,000 - $62,000 |
Partial Deduction |
Any Amount |
Full Deduction |
| >$62,000 |
No Deduction |
|
|
|
| Married Filing Jointly |
<$83,000 |
Full Deduction |
|
|
| $83,000 - $103,000 |
Partial Deduction |
Any Amount |
Full Deduction |
| >$103,000 |
No Deduction |
|
|
Contribution Amounts:
| Year |
Limit |
Over age 50 Limit |
| 2003 |
$3,000 |
$3,500 |
| 2004 |
$3,000 |
$3,500 |
| 2005 |
$4,000 |
$4,500 |
| 2006 |
$4,000 |
$5,000 |
| 2007 |
$4,000 |
$5,000 |
| 2008 |
$5,000 |
$6,000 | | |
Investment Options:
Withdrawal Restrictions: In order for your withdrawal to be IRS penalty free, one of the following must apply:
- Distribution is made on or after the date in which the individual attains age 59 ½;
- Distribution is made to a beneficiary on or after the owner's death;
- Distribution is attributable to the disability of the owner; or
- Distribution is for the first time home purchase up to $10,000 or is made for the costs of higher education.
Required Minimum Distribution: Begin at age 70 ½- First distribution must be made by April 1st of the year following the year you attained age 70 ½.
NOTE: The information presented is only of a general nature and may omit many details and special rules. Accordingly, it cannot be regarded as legal or tax advice. We always recommend that you contact a tax expert regarding your individual situation.